Electricity Load Management

Electricity Load Management is of two types: demand side management (DSM) and supply side
management (SSM). While Demand Side Management refers to the Scientific control of usage and
demand of Electricity, for achieving better load factor and economy, by the Supplier, Supply Side
Management (SSM) refers to activities conducted on the utilitys side of the customers meter, in other
words, how energy is provided to an end user/organization.
Installation of ones own renewable energy facility (small wind, small solar, biomass etc) can supply
ones facilities with the energy generation independently
Electrical Energy demand management implies actions that influence demand for energy. The actions of
market players and government (regulation and taxation), influences this demand for electricity.
Usually, the goal of demand side management is to encourage the consumer to use less energy during
peak hours, or to move the time of energy use to off-peak times such as nighttime and weekends.
Peak demand management does not necessarily decrease total energy consumption, but could reduce
the need for investments in networks and/or power plants for meeting peak demands. An example is
the use of energy storage units to store energy during off-peak hours and discharge them during peak
hours.
Electricity use can vary dramatically on short and medium time frames, and the pricing system may not
reflect the instantaneous cost as additional higher-cost ("peaking") sources are brought on-line. In
addition, the capacity or willingness of electricity consumers to adjust to prices by altering demand
(elasticity of demand) may be low, particularly over short time frames. In many markets, consumers
(particularly retail customers) do not face real-time pricing at all, but pay rates based on average annual
costs or other constructed prices.
Suppliers' costs do not include all damages and risks of their activities. External costs are therefore
incurred by others directly or by damage to the environment. These are known as externalities that can
be internalized by adding external costs to the direct costs of the supplier as a tax or by introducing
some form of rebate.
DSM is often applied by TOD (Time of Day) Metering and differential pricing.
Subsidies to the energy supply industry are still common in some countries.
Demand Side Management
It is achieved through the following methods:
Energy Efficiency: Using less power to perform the same tasks. E.g. using less energy consuming bulbs
for lighting, using electric programmed timers to run fridges. Examples
1. Investing in efficient light systems

One of the simplest ways to make a significant change is to invest in efficient lighting systems. Compact
fluorescent lamps (CFLs) and LED lighting options use less energy, generate less heat, and last more than
10 times longer than the average incandescent bulb. Adding lighting motion sensors will increase the
energy efficiency even further.
2. Switching off light when not in use.
Just because electronics arent being used, doesnt mean they arent consuming electricity. Turn off or
unplug any appliances when they arent being used since they still consume electricity in standby mode.
You can also install power bars so you can easily access the plugs for multiple electronics and turn them
all off with the simple flick of a button.
3. Use of Programmable Controllers
Why heat a room or keep lights on when no one is there? Install a programmable system which controls
lighting, ventilation and temperature to knock down building room energy inefficiencies.
4. Computer intelligence
A typical desktop computer uses from 65 watts to 250 watts. When computers are left on overnight,
they continue to consume electricity. There are software management solutions which help decrease
the amount of energy computers and peripherals use, which considerably decrease overall energy costs
per year. Using this type of energy management tool on an organizations network has been
demonstrated to save on average 200 kg of CO2 emissions per PC per year, and generate $36 per PC per
year in energy savings.
Demand Response: Any reactive or preventative method to reduce, flatten or shift peak demand. This
includes all intentional modifications to consumption patterns of electricity of end-user customers that
are intended to alter the timing, level of instantaneous demand, or the total electricity consumption.
Demand Response refers to a wide range of actions which can be taken at the customer side of the
electricity meter in response to particular conditions within the electricity system (such as peak period
network congestion or high prices).
Dynamic Demand: Advance or delay appliance operating cycles by a few seconds to increase the
Diversity factor of the set of loads. The concept is that by monitoring the power factor of the power grid,
as well as their own control parameters, individual, intermittent loads would switch on or off at optimal
moments to balance the overall system load with generation, reducing critical power mismatches. As
this switching would only advance or delay the appliance operating cycle by a few seconds, it would be
unnoticeable to the end user.
One of the main goals of demand side management is to be able to charge the consumer based on the
true price of the utilities at that time. If consumers could be charged less for using electricity during offpeak hours, and more during peak hours, then supply and demand would theoretically encourage the
consumer to use less electricity during peak hours, thus achieving the main goal of demand side
management.

Disadvantages
Some people argue that demand-side management has been ineffective because it has often resulted in
higher utility costs for consumers and less profit for utilities.
Another problem of DSM is privacy: The consumers have to provide some information about their usage
of electricity to their electricity company.
Supply Side Management (SSM)
Supply Side Management (SSM) refers to activities conducted on the utilitys side of the customer
meter, in other words, how energy is provided to an end user/organization.
The utility company often internalizes external costs (externalities) incurred such as damage to the
environment in the form of environmental protection tax which is charged to customers.
Three main types of techniques are used:
a) Direct load control: Program designed to interrupt customers load during peak time by direct control
of power supply to individual appliances at customers premises.
b) Time of use (TOU) tariff these are discriminatory but have been shown to have significant effect on
load management.
c) Dispatch load management: The supply company makes agreement with customers to reduce their
load and receive discounts on bills as compensation (tax rebates).